~ politics for the people

George Osborne’s latest tax scandal proves he is a con-artist, not a Chancellor | The Canary

George Osborne is running a grand experiment on trickle-up economics, by paying for tax cuts for the wealthy, with welfare and services cuts to everyone else. While his experiment has proven to be morally, and literally, bankrupt, he continues to crow success. This makes George Osborne a con-artist, not a Chancellor.

At his own invitation then, we’d like Mr Osborne to answer for this record.

We would like to know why the Osborne family business in which the Chancellor holds shares – Osborne and Little – has paid zero corporation tax in the last 7 years. According to a report by Private Eye, Osborne and Little paid no Corporation Tax on earnings of nearly £200m. In fact, they actually received £12,000 of public money from the government in the form of tax credits.

We would also like to know why the Chancellor continues to reduce tax revenues from the wealthiest corporations and individuals in the country, and pays for them by cutting welfare and investment in public services.

By cutting Corporation Tax from 28% to 18%, Mr Osborne costs the Treasury £8bn a year by 2016-17

By granting tax relief to Capital Gains for the benefit of buy-to-let landlords, Mr Osborne costs the Treasury £5.2bn a year

By signing up to the Swiss Bank Tax Evasion deal which granted amnesty to known tax avoiders, Mr Osborne cost the Treasury of taxes liable on £78bn of assets in over 30,000 accounts.

The Chancellor has attempted to pay for these cuts in revenue by cutting welfare and services for the middle class, the working poor, and people who are sick, disabled, elderly, or otherwise in need of support from public funds.

To put these figures in perspective, the entire annual bill for Jobseeker’s Allowance is £4.9bn. Mr Osborne’s Corporation Tax cut cost the nation’s purse nearly TWICE the cost of providing welfare payments to every single unemployed person in Britain.

The stalled cuts to Working Tax Credits which will leave Britain’s poorest families at least £1,300 a year worse off are purported to save £4.5bn a year. The Chancellor made a choice to get that money from the UK’s poorest people rather than shelve his tax relief for the Capital Gains made by buy-to-let Landlords.

Related

Post navigation

10 thoughts on “George Osborne’s latest tax scandal proves he is a con-artist, not a Chancellor | The Canary”

Whenever people on the left mention wealth re-distribution or inequality the cry from the right is “Class war”, damn right there is a “Class war” but it’s not the tax evading bosses that are the victims of it.

The story about Osborne’s family business (making wallpaper) is a bit of a red herring. Privately owned companies rarely pay corporation taxes. I owned a company for many years and never paid corporation tax because we never made a profit and neither has Osborne’s family business. I took money out via normal PAYE. That’s how private companies are run. You only pay corporation tax if you leave money from profits in the business. It is generally easier to fund the business with your own money.

I know the story indicates earnings but it is turnover. If you look at the Private Eye article you will see it says £200m in sales. That is turnover and not profit.

You only pay tax on profits and they don’t make profits. I downloaded their accounts for the last couple of years and it is pretty normal for a private company. They made a book profit this year but that is set against losses for previous years probably due to capital allowance and depreciation of machinery etc. In fact they actually pay too much tax in one way. They could pay dividends to the shareholders out of profits by taking lower salaries. Then there would be no employers or employees national insurance liability on those sums. This is a very common arrangement, but they haven’t taken advantage of that.

It seems the money is all going into pay packets for its bosses and dividends for shareholders like young George – The Guardian reported in 2014 that, while the company was reporting a loss of around £750,000, company directors including both Sir Peter and Lady Felicity pocketed £1.3 million.
What we’re seeing here appears to be creative accountancy – or tax avoidance, if you like.

Well mr Osborne you have failed me and my family big style.im 30 years of age and have worked 15 years ive payed tax that whole time.just recently i was laid off from a job entirely not my fault.me my partner and 3 year old daughter were living off what was owed to us.we put a claim in for jsa 4 weeks ago and all we have had is 115 pounds to live on in that time from jsa claim being made.i was told i could receive a little more to help us as we now have to go 17 days till we get are first proper payment.we then get told no sorry you do have to wait with no money for 17 days.we have no money for electric we had to get help from local food bank who are really helpful and understanding i might add and we as a family have been suffering from severe cold and flu with no electric which are property runs entirety to put heating on.when i rang Hampshire County council they said the government don’t have any money for us to give you im afraid.so i ask you this where is all the money i paid in tax for 15 years gone and why do you and that pig s***ger mate of yours keep telling us to tighten are belts and we’ve got no money as a nation.yet a crisis brakes out that isnt f*** all to do with us and you pair of p***ks magic up millions/billions out of nowhere and help them over your own people.shame on you all i cant even hold my head up high and say im proud to be British anymore. Embarrassed would be a better word.

I take it this is directed at George Osborne.
Please try not to use foul language on this site – it’s intended for everybody and I have to edit out the expletives. If I find myself doing it too often, I simply delete the whole comment.
Other than that, I do sympathise.

Subscribe via email

Enter your email address to follow this blog and receive notifications of new posts by email.